Systems and methods for data collection at a point of return

ABSTRACT

Systems and methods are described for collecting data at a merchant&#39;s point of return for use in processing a merchandise return transaction that is being requested by a customer. In various embodiments, the data may be collected using a wide variety of data collection technologies and may be used in conjunction with stored data, including data collected from other merchants, by a return authorization system to make a determination whether to accept or deny the requested merchandise return. The data may additionally or alternatively be used to determine whether to issue a warning to the customer about limitations on future return transactions presented by the customer. Examples of data categories that may be collected include, but are not limited to, information about: the merchant, the customer, the requested transaction, the merchandise being returned, one or more receipts, a clerk processing the transaction, and other general applicable information.

This application is a continuation of U.S. patent application Ser. No.11/263,890, filed Nov. 1, 2005 and claims the benefit of priority under35 U.S.C. § 119(e) of U.S. Provisional Application No. 60/672,322, filedon Apr. 18, 2005 and entitled SYSTEM FOR COLLECTING, ANALYZING, ANDMAKING DECISIONS ON CONSUMER RETAIL DATA, and of U.S. ProvisionalApplication No. 60/673,566, filed on Apr. 21, 2005 and entitled SMARTCOUPONS, the entireties of which are incorporated herein by reference.

FIELD OF THE INVENTION

The invention relates to automated processing of merchandise returns,and, in particular, to collecting data at a point of return.

BACKGROUND OF THE INVENTION

Determining when to allow retail customers to return purchasedmerchandise is a delicate and complex business decision that faces manymerchants. On the positive side, customers typically appreciate, andhave come to expect, a liberal return policy. Such a policy can engendergood will towards the merchant and often encourages the customer topurchase more freely, indulging more often in “impulse buying.”

On the negative side, accepting returned merchandise can expose themerchant to a number of disadvantages, including, for example, loss of asale, possible inability to re-sell the item at the original price,extra labor and bookkeeping expenditures associated with handling thereturn, and a wide variety of fraudulent behaviors on the part of thecustomer and/or employee accepting the return.

Implementing a complex return policy that can take into account not onlythe current return situation but also other related information mayserve the interests of the merchant, attempting to balance theabove-described advantages and disadvantages, while enhancing customergood will, store reputation, as well as bottom-line profitability.Unfortunately, the customer contact person for a store's return policyis frequently a lower-tier clerk, who may not be equipped to implementsuch a policy or know how to use available information to help make thereturn authorization determination.

SUMMARY OF THE INVENTION

Systems and methods are described for collecting data at a merchant'spoint of return for use in processing a merchandise return transactionthat is being requested by a customer. In various embodiments, the datamay be collected using a wide variety of data collection technologiesand may be used in conjunction with stored data, including datacollected from other merchants, by a return authorization system to makea determination whether to accept or deny the requested merchandisereturn. The data may additionally or alternatively be used to determinewhether to issue a warning to the customer about limitations on futurereturn transactions presented by the customer. Examples of datacategories that may be collected include, but are not limited to,information about: the merchant, the customer, the requestedtransaction, the merchandise being returned, one or more receipts, aclerk processing the transaction, and other general applicableinformation.

Embodiments of a method of authorizing a requested merchandise return ata merchant's point of return, comprising collecting information frommultiple merchants about items being returned and providing theinformation to a return authorization system are described.

Embodiments of a system for authorizing a merchandise return requestedat a merchant's point of return are described. The system comprises apoint of return device configured to accept input about items presentedfor return, and to provide the information to a return authorizationsystem that receives information collected from multiple merchants.

Embodiments of a system for authorizing a requested merchandise returnat a merchant's point of return are described. The system comprisesmeans for collecting information from multiple merchants about itemsbeing returned and means for providing the information to a returnauthorization system.

For purposes of summarizing embodiments of the invention, certainaspects, advantages, and novel features of the invention have beendescribed herein. It is to be understood that not necessarily all suchaspects, advantages, or novel features will be embodied in anyparticular embodiment of the invention.

BRIEF DESCRIPTION OF THE DRAWINGS

A general architecture that implements various features of specificembodiments of the invention will now be described with reference to thedrawings. The drawings and the associated descriptions are provided toillustrate embodiments of the invention and not to limit the scope ofthe invention. Throughout the drawings, reference numbers are re-used toindicate correspondence between referenced elements. In addition, thefirst digit of each reference number indicates the figure in which theelement first appears.

FIG. 1 is a block diagram depicting one embodiment of a merchandisepoint of return system.

FIG. 2 is a block diagram depicting a closer view of one embodiment of areturn authorization service.

FIG. 3 depicts one embodiment of a dedicated point of return device.

FIG. 4 depicts a series of user interface screenshots for one embodimentof a process for collecting data at a point of return.

FIG. 5 depicts one embodiment of a fraud model architecture.

FIG. 6 depicts a set of factors that may be used to influence oneembodiment of an authorization process and/or a process for determiningwhether to issue a warning at a point of return.

FIG. 7 is a flowchart that illustrates one embodiment of a process forcollecting data at a point of return.

FIG. 8 is a flowchart that illustrates one embodiment of a process forissuing a warning notice to a customer at a point of return.

FIG. 9 is a flowchart that illustrates one embodiment of a process fordetermining whether to issue a warning notice to a customer at a pointof return.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS

Embodiments of computer-implemented systems and methods are describedthat provide warnings to customers requesting to return to a merchantmerchandise that has purportedly been previously purchased. The warningsare based, at least in part, on a risk assessment of the customer'scurrent and past return activity and on the merchant's return policies.For example, in some embodiments, the assessment is implemented using ascore calculation. When the consumer presents previously purchasedmerchandise for return, data about the requested return, about theconsumer, and about a clerk processing the return may be entered into acomputerized point-of-return (POR) device, and, based, at least in part,on the inputted data, a computer-calculated score or othercomputer-implemented assessment is generated to assess the likelihoodthat the requested return transaction is fraudulent or is abusive of themerchant's return policies. Acceptance of the returned items by themerchant may be based, at least in part, on the calculated score orother authorization assessment. In some embodiments, the authorizationrecommendation may be manually overridden at the point of return by aclerk, manager or other authorized representative of the merchant.

Various types of data about the requested return merchandise may becollected, including, for example, amount, type, and value of itemsbeing presented for return. In some embodiments, product identifiers,such as a Stock Keeping Unit code (SKU), Universal Product Code (UPC),Radio Frequency Identifier (RFID), and the like, may be used to identifythe merchandise and may be further used to access stored informationabout the merchandise. Other data about the current return transaction,and about one or more original purchase transactions associated with themerchandise to be returned, such as receipt identifier, date and time,and store number and location, transaction identifier, cashieridentifier, register number, and the like may also be collected by thePOR device.

In addition to the data about the current transaction, the score orother assessment may be based on stored information about the customer'spast return activity and other stored data that is available to thecomputerized system. For example, as was the case with the currenttransaction, information including, but not limited to, informationabout one or more dates, locations, return amounts, merchant types,clerks, and the like, associated with past return transactions may beinput and/or retrieved. Identification data about the customer and abouta clerk processing the requested return may be collected by the PORdevice and may allow for retrieval of stored data associated with thesetwo people who participate in the return transaction and are thussources of potential fraud. Additionally, in some embodiments, thesystem may take into account information about other consumers presentin the store at the time of the current or past transactions, policereports about stolen merchandise in the area, information about criminalactivity associated with the consumer or the clerk, as well as otherunexpected relationships.

In some embodiments where authorization is assessed using a scoringsystem in which a low score indicates low risk, typically, if thecustomer makes returns infrequently, the score will remain low. Behaviorthat has been deemed to be indicative of fraud or abuse may drive thescore up towards a threshold for being denied and may continue toinfluence future score calculations. Thus, a warning may be generated bythe POR device if the analysis indicates that additional requests fromthe customer to return merchandise may be subject to a denial. Apractitioner of skill in the art will appreciate that in otherembodiments that also use a score for an authorization determination, alow score may indicate a high risk, or some other association betweenscore and authorization may be used, and algorithms for authorizationand/or determining whether to issue a warning may be adjustedaccordingly. Furthermore, in embodiments that authorize or declinereturn transactions using a non-scoring system, such as a non-scoringrule-based system, systems for determining whether to present a warningmay be adjusted accordingly without departing from the scope and spiritof the systems and methods described herein.

FIG. 1 is a block diagram depicting one embodiment of a merchandisepoint of return system. A customer 110 who wishes to return previouslypurchased merchandise brings the merchandise to a point of return 125 ata merchant establishment 120 and requests to receive an equivalentdollar amount of either cash, credit, merchandise, or some combinationor equivalent thereof. The point of return 125 may be a desk or locationwithin the merchant establishment 120 that is dedicated for processingmerchandise returns. Alternatively, the point of return 125 may be anormal checkout terminal or cashier's station that may be additionallyused for processing purchases and other types of business transactions,or the point of return 125 may be another location.

For purposes of this disclosure, the systems and methods describedherein will frequently be described with reference to a clerk or othermerchant employee who receives a merchandise return request from acustomer 110 and who accepts or denies the return request, based, atleast in part, on a recommendation received from one or more of thesystems and methods described herein. In various embodiments, theactions attributed to the clerk may alternatively or additionally becarried out by another type of merchant employee or representative, orother person authorized to handle the merchandise return, or by anautomated process or system configured to process the return request.Thus, while, for ease of description, the systems and methods will bedescribed with reference to a clerk at a point of return 125, it shouldbe understood that embodiments of the systems and methods may also becarried out with one or more of the above-listed, or other, clerkalternatives.

The clerk may use an automated point of return (POR) device 126 forprocessing the requested merchandise return. The POR device 126 may beused to input information about the requested return and to provideauthorization information for the return to the clerk handling thereturn. In some embodiments, a device dedicated for use with merchandisereturns may be used in association with the systems and methodsdescribed herein. One embodiment of such a dedicated POR device 126 isdescribed with reference to FIG. 3 below. In other embodiments, the PORdevice 126 is at least one of: a hand-held device, a wireless device, atelephone-assisted device, a self-serve kiosk, an assisted-return kiosk,or other suitable apparatus. In some embodiments, rather than using adedicated POR device 126, a multi-functional check-out terminal or othercomputerized device may be configured to provide some or all of thefunctionality associated with the POR device 126 described herein. Insome embodiments, more than one device may be used to provide some orall of the functionality described herein for the POR device 126. Thus,while the systems and methods described herein may be described withreference to a dedicated POR device 126, it is to be understood that awide variety of dedicated and/or multi-purpose POR devices 126 may beused without departing from the spirit of the invention as describedherein.

In various embodiments, merchants 120 have a return policy that outlinesconditions for accepting returned merchandise. For example, the merchant120 may stipulate that the customer 110 has a receipt associated withpurchase of the item to be returned, that the return take place no morethan thirty days after the purchase date, that the item be in itsoriginal packaging and/or has not been used, and so forth.

In some embodiments, a sign is posted at a merchant's establishment thatincludes one or more criteria for acceptance of a merchandise return.For example, the criteria may state that the merchandise return will beaccepted if a customer making the merchandise return has returned fewerthan X times in the last Y days, totaling less than Z dollars ofmerchandise, where X, Y, and Z are values that may be determined by themerchant, and where any two or more of values may be the same value ormay be different values.

The following is one example of a set of return policy rules that themerchant 120 may post for the information of customers and that mayserve as a public warning to customers regarding the merchant'smerchandise return rules:

“ABC STORE RETURN CRITERIA. ABC Store will honor a return or exchangeunder the following conditions. Customers are hereby warned that returnsthat exceed these conditions may be denied:”

“With a receipt: ABC Store will accept the return if it is thecustomer's third or earlier return in the previous thirty days.”

“Without a receipt: ABC Store will accept the first non-receipted returnin any fifteen day period if it is less than $65 and the customer hasfewer than four previous returns in the previous thirty days.”

“ABC Store may deny a customer's return if the customer was unable toprovide an approved ID, if the receipt date exceeds ABC Store's thirtyday policy, if the customer has already been denied a return during thelast thirty days or advised that they would not be allowed to returnwithin thirty days.”

“Returns outside these guidelines may be considered excessive based oncertain circumstances, which include unusual frequency, excessive totaldollar amount and/or returns in multiple store locations and are subjectto denial.”

Merchants 120 may implement this or any of a wide variety of otherreturn policies to suit their business goals. For example, merchants 120may implement different return policies for different classes of items,stipulating, for example, that software merchandise returns must stillbe in their original, unopened packaging, while returns of other typesof products may be accepted, even with opened packaging. In accordancewith some merchant return policies, certain types of merchandise are notaccepted for return. As another example, a merchant 120 may desire toimplement a more liberal return policy during the post-holiday seasonwhen the point of return 125 counters experience a higher-than-normalvolume of returns. Based at least in large part on the return policyused by the merchant 120, a clerk, or other person or process, at thepoint of return 125 may accept or deny the customer's 110 returnedmerchandise.

As depicted in FIG. 1, authorization determination for the customer'srequested return may be handled by an automated return authorizationservice 100. The return authorization service 100 may accept informationinput by the clerk at the point of return 125 and use various types ofinformation associated with the requested return in order to implementthe merchant's 120 return policy and to assess risk of exposure tofraudulent, abusive, or unprofitable behavior that may be associatedwith accepting the requested return.

In some embodiments, the return authorization service 100 may beimplemented, as depicted in FIG. 1, as an external entity whose servicesare contracted or otherwise provided to the merchant 120. Additionallyor alternatively, the return authorization service 100 may beimplemented as one or more software and/or hardware components under theoperation of the merchant 120 that function in the POR device 126 and/orwithin one or more computer devices at the point of return 125, atanother location within the same physical merchant establishment and/orat a geographically removed location used by the merchant 120. Thus,although the systems and methods described herein are most oftendescribed in association with an external return authorization service,it is to be understood that any combination of these or otherimplementation arrangements may be used without departing from thespirit of the invention described herein.

In embodiments where the return authorization service 100 is a separateentity that assesses and authorizes requested returns presented to themerchant 120, communication between the merchant's point of return 125and the return authorization service 100 may be carried out using any ofa wide variety of appropriate devices and/or communications and datasecurity technologies. For example, the communications between acomputerized device at the merchant's point of return 125 and a merchantinterface 130 at the return authorization service 100 may be carried outusing the Internet or other global network. In other embodiments, thecommunications may be carried out using any communication systemincluding by way of example, dedicated communication lines, telephonenetworks, wireless data transmission systems, two-way cable systems,customized computer networks, interactive kiosk networks, automaticteller machine-type networks, interactive television networks, and thelike.

The clerk handling the requested return uses the POR device 126 to sendinformation about an authorization request to the return authorizationservice 100. The return authorization service 100 receives theinformation from the POR device 126 and uses the information, togetherwith other stored information, to make an authorization determinationfor the requested merchandise return, assessing the risk of acceptingthe return and implementing merchant return policy preferences torecommend either that the clerk accept the requested return, refuse toaccept the requested return, or take another course of action.

In some embodiments, as will be described in greater detail below, thereturn authorization service 100 may provide a warning to the customer110 together with a positive authorization determination, indicatingthat although the current return request is being accepted,authorization of future return requests from the customer may belimited.

As another example, in accordance with some store policies, as analternative to accepting the requested return, the authorization service100 may provide an authorization determination recommending that theclerk offer store credit or some other alternative in place of arequested cash exchange for the cash value of the returned merchandise.In some embodiments, the authorization service 100 may also provide arecommended timing for paying the consumer. For example, theauthorization service 100 may recommend mailing a check to cover thereturn amount, crediting an account in the future, implementing acooling-off period, requiring further review before authorization, orthe like.

The embodiment of the return authorization service 100 that is depictedin FIG. 1 includes a merchant interface 130, a decision engine 135, acustomer identification data repository 137, a customer return datarepository 140, a merchant data repository 145, a repository of merchantreturn authorization policies 150, and a repository of merchant warningissuance policies 155. Other embodiments of the return authorizationservice 100 may include other components and/or a subset of thesecomponents. For example, some embodiments may include only the decisionengine 135 and may access information from other sources.

The merchant interface 130 receives an authorization request from themerchant point of return device 126 and accepts information about therequested merchandise return sent from the POR device 126. The receivedinformation is sent to a decision engine 135 for assessing riskassociated with accepting the requested merchandise return and formaking an authorization determination that is based on the assessed riskas well as on stored information about the merchant's returnauthorization policies 150. The return policy 150 may be implemented ina variety of computer-usable forms, including, but not limited to,rule-based systems, decision trees, scorecard systems, and the like. Invarious embodiments, the decision engine 135 may assess the requestedreturn transaction with reference to one or more threshold conditions,such as an acceptable score. In some score-based embodiments, in which ahigh score indicates low risk, if the requested return transaction meetsor exceeds the threshold, the return is accepted, while if the requestedreturn does not meet the threshold, the return is denied. In otherembodiments, other methods of assessing whether to accept the requestedreturn may alternatively or additionally be used.

The decision engine 135 may also use stored information about themerchant's warning issuance policies 155, if available, to determine ifa warning is to be issued to the customer. The warning policy 155 mayalso be implemented in a variety of computer-usable forms, including,but not limited to, rule-based systems, decision trees, scorecardsystems, and the like. In some embodiments in which assessment iscarried out by a scoring system, in which a lower score indicates higherrisk, when the decision engine 135 determines that the returntransaction has exceeded the threshold by only a small margin that fallswithin a predetermined range of margins, a warning to the customer 110may be issued along with the acceptance, alerting the customer 110 thatacceptance of future returns may be limited, based on additional returnactivity.

In addition to stored information about the merchant's return andwarning policies 150, 155, the decision engine 135 may also useinformation from one or more other repositories of data collected andmaintained by the return authorization service 100, or from one or moreexternal merchant or non-merchant data sources 160.

For example, the decision engine 135 may access stored merchant data 145that may include any of a wide variety of types of informationassociated with the merchant 120, including, but not limited to:information about the location(s) of the merchant's stores or otherestablishments, information about the merchant's employees (includingnames, identification numbers, hire dates, home addresses, pastassociation with proper, fraudulent, and/or questionable merchandisereturns, and the like), and information about the merchant's 120inventory of merchandise.

The decision engine 135 may use information stored in a repository ofcustomer identification data 137. The repository of customeridentification data 137 may store information about a large number ofcustomers, including, for example, information about customer names,addresses, identification numbers, such as driver's license and otheridentification numbers, biometric identification information, and thelike. This information may be used in an effort to positively identifythe customer 110.

The decision engine 135 may also use information from one or morerepositories of customer return data 140, which include a wide varietyof information about past merchandise return activity associated withthe individual customers 110. Some examples of information associatedwith past purchase and return transactions are described in greaterdetail with reference to FIG. 6 below. In some embodiments, the customerreturn data repository 140 may also include information about thecustomer's 110 purchase history. Using the customer identification data137 and the customer return data 140 allows the decision engine 135 linkinformation about past merchandise return activity with the customer 110requesting the return at the point of return 125.

In some embodiments, a “negative file,” such as a listing of customers110 who are known to have been involved with past fraudulent returns orpast criminal activity, may be maintained and used to make returnauthorization determinations. In some embodiments, one or more “positivefiles” may exist that list customers who may be accorded specialtreatment by the return authorization service. For example, one or morepositive files may be maintained to list customers known to beprofitable to the merchant and/or customers in the entertainmentindustry, or other categories of customers, who may be accorded specialreturn privileges. Such positive files may be used to make returnauthorization determinations.

In some embodiments, agreements may be implemented allowing merchants toshare their collected data for return authorization purposes.

Furthermore, the decision engine 135 may additionally or alternativelyaccess and make use of information stored in data repositories that areexternal to the return authorization service 100. External data sourcesmay be used to access information such as, for example: customer and/oremployee identification information, address information includingpostal box information, credit data, shoplifting data, crime data,identification theft data, sales tax data, or any of a wide variety ofother useful information types. Such external data may be accessedexternally on an as-needed basis and/or may be stored by the returnauthorization service 100 for subsequent use.

The functions of the decision engine 135 may be carried out in any of awide variety of suitable, computer-implemented forms, such as a decisiontree, an expert system, or other ruled-based decision system, as alinear calculation or other scoring mechanism, or as a form ofprobabilistic or neural network, genetic, or other statistical model oralgorithm for decision-making. A more detailed description of factorsthat may be used by the decision engine 135 to make a returnauthorization determination and/or to determine whether to issue awarning associated with the requested return will be provided withreference to FIG. 6 to follow.

For ease of description, the return authorization service 100 asdepicted thus far in the disclosure and with reference to FIG. 1 hasbeen described as providing merchandise return authorizations and otherrelated services to a single merchant 120. However, it is to beunderstood that, in practice, it is much more common for the returnauthorization service 100 to serve a plurality of merchants 120. Whenthe return authorization service 100 serves a plurality of merchants120, it may maintain an associated plurality of data stores, including,but not limited to: the customer return data repository 140, themerchant data repository 145, the merchant return authorization policies150, and the merchant warning issuance policies 155, for each of themerchants 120 for whom it provides return authorization services. Thereturn authorization service 100 may maintain these data storesseparately, either logically and/or physically. Furthermore, the returnauthorization service 100 may combine some or all of the various datastores described above.

Thus, although a wide variety of embodiments exist, for ease ofdescription in this disclosure, it will be assumed that the embodimentsof the return authorization service 100 described herein maintain datareceived from different merchants 120 separately, and do not use datareceived from one merchant to make an authorization return determinationfor another merchant. In other embodiments, however, modifications maybe made to the systems and methods described herein such that thesystems and methods may store data from a plurality of merchantstogether and/or may use data from one merchant in a return authorizationrequest from another merchant. Furthermore, data from externalthird-party data providers, such as government information sources,credit bureaus, police information sources, and the like may be used bythe return authorization service 100 to make authorization and/orwarning determinations for the merchant 120.

The return authorization service 100 and included modules 130, 135, 137,140, 145, 150, 155, as depicted in FIG. 1, are one embodiment of areturn authorization service 100 in connection with the systems andmethods described herein. It is to be understood that in otherembodiments, the structures and functions of these modules may beimplemented in a wide variety of different configurations withoutdeparting from the spirit of the systems and methods described herein.For example, some or all of the data storage functions, thedecision-making functions, the communications functions, and the like,may be provided by external third-party service providers, may beimplemented at one or more merchant locations, including within the PORdevice 126, and/or may be implemented differently using differentinternal structures. Furthermore, although the return authorizationservice 100 is depicted in FIG. 1 as being a single entity located at asingle location, it is to be understood that in other embodiments, thestructures and functions of the return authorizations service 100 may beimplemented in total or in part by a distributed system of hardware andsoftware that may be located at two or more physically distinctlocations.

Once the decision engine 135 has made an authorization determination forthe requested return, the merchant interface 130 may send a message tothe point of return device 126, informing the clerk of thedetermination. In some embodiments, the point of return device 126 maythen print a record of the requested return, indicating that the returnhas been accepted or denied. The record may include associatedexplanations, and, in some embodiments, a warning about limitations onthe acceptance of future merchandise returns from the customer 110.

FIG. 2 is a block diagram depicting a closer view of one embodiment of areturn authorization service 100 that provides a variety of services tothe merchant 120. As depicted in FIG. 2, the various repositories ofdata used by the return authorization service 100 are combinedconceptually as a single shared database 210. As described withreference to FIG. 1, the data stored for use by the return authorizationservice 100 may be stored and maintained as a single or a plurality ofdata repositories.

The data in the shared database 210 is managed by a data accessor 215that receives data for storage in the shared database 210 from a varietyof sources and that receives requests for data from the shared database210 for a variety of purposes. In various embodiments, the data accessor215 may manage the various types of data using any of a variety ofcomputer-implemented platforms suitable for such purposes, including,but not limited to, DB2, Oracle, or other SQL-based systems.

As depicted in FIG. 2, merchandise data 225 from a merchant 120 may besent to a merchandise data interface 220 of the return authorizationservice 100 for storage in the shared database 210 by the data accessor215. Merchant administrators 270 may use an administrative interface 260of the return authorization service to send and receive data to the dataaccessor 215.

The data accessor 215 may further provide data to a report generator 230that provides reporting services 235 to the merchant 120. Examples ofdata reported for a given period may include, for example: total numberof returns, total number of items returned, total dollar value returned,total number of requested returns denied, identification of customerswhose returns were denied, return statistics by store branch, and thelike. Reports for merchants may include daily transaction reports, aswell as longer term reports for loss prevention analysis.

In some embodiments, reports may also be made available to customers110, and especially to customers whose return requests have been denied,or who have received a return-related warning. The customers may wish toknow what information is stored about their merchandise purchase and/orreturn activity, including, for example, store(s) returned to, anyauthorizations and denials, and dates and dollar amounts of requestedreturn(s).

An authorizer module 240, which may comprise, for example, the decisionengine 135 that is described with reference to FIG. 1, provides returnauthorization determinations 250. As depicted in the embodiment shown inFIG. 2, the authorizer 240 may communicate directly with a stand-aloneterminal 245 that is dedicated for point-of-return use. The authorizer240 is further configured to communicate with a point-of-sale or othersystem 255 used by the merchant to process merchandise returns and tocommunicate with the return authorization service 100.

In various embodiments, transfer of some or all of the data into and outfrom the return authorization service 100 may be implemented, forexample, using FTP transfer protocols. For protection of consumerprivacy and merchant business information, the data is preferablytransferred into and out from the return authorization service 100 in anencrypted form, for example using PGP (Pretty Good Privacy) or othersuitable encryption technology.

The functions and/or components of the return authorization service 100described with reference to FIG. 2 may be implemented, in someembodiments, as a plurality of servers operating as a server farm underthe management of any of a variety of clustering technologies. Such anarrangement typically allows for relatively seamless replacement ofcomponents as well as upgrades and additions to the system astransaction volume increases.

Furthermore, the functions and/or various modules of the returnauthorization service 100 may be implemented in various embodimentsusing personal computers (PCs), workstations, other processors, programlogic, or other substrate configurations representing data andinstructions, which operate as described herein. In various embodiments,the processors may comprise controller circuitry, processor circuitry,processors, general purpose single-chip or multi-chip microprocessors,digital signal processors, embedded microprocessors, microcontrollersand the like.

FIG. 3 depicts one embodiment of a dedicated point of return (POR)device 300 for use in processing merchandise returns. The POR device 300in FIG. 3 is configured to use a telephone dial-up connection or networkcable connection to communicate with the return authorization service100. In other embodiments, one or more other wired or wirelesscommunications systems are used for communicating with the returnauthorization service 100. In some embodiments, some or all of thefunctions provided by the return authorization service 100 may beprovided by components that are internal to the POR device 300.

As depicted in FIG. 3, the POR device 300 includes a display screen 310for communicating visually with a clerk or other person handling therequested return transaction. Examples of communications that may bepresented on the display screen 310 are described with reference to FIG.4 to follow. In other embodiments, the POR device 300 may include audiospeakers, video display, or any of a wide variety of othercommunications technologies for communicating information to the clerk.

The POR device 300 also includes a keyboard 315 with a plurality ofbuttons that allow the clerk to input information to the POR device 300.Additionally, other buttons and input systems in other parts of the PORdevice 300 also allow the clerk to input information to the POR device300. In other embodiments, any of a wide variety of other input systems,such as voice recognition systems, keyboards, touch screen systems,camera or video systems, biometric systems, and the like, may be usedadditionally or alternatively for allowing the clerk to inputinformation into the POR device 300. Furthermore, other forms ofelectronic reading devices, including, but not limited to,1-dimensional, 2-dimensional, or 3-dimensional barcode scanners,magnetic stripe readers, readers for other electronically-readablecodes, RFID readers, any of a wide variety of biometric data inputdevices, and the like, may be used to input data to the POR device 300.For example, the POR device 300 depicted in FIG. 3 includes a built-inmagnetic stripe reader 320 for scanning identification cards, creditcards, and the like that include a magnetic stripe, and a peripheral2-dimensional bar code scanner 325 for reading cards provided with a2-dimensional barcode. Other peripherals for inputting data about a widevariety of other identification and informational sources may also beused.

As shown in FIG. 3, the POR device 300 may be configured to produce apaper receipt 330 or other record of the merchandise return transactionfor the customer 110 and/or for the clerk on behalf of the merchant 120.In other embodiments, a record of the transaction may be provided to thecustomer 110 using email or other electronic communications technology.Where the customer 110 is requested to sign a record of the returntransaction, the POR device 300 may include a system for electronicallycapturing the signature or other form of customer acknowledgement. Insome embodiments, an indication of a warning provided to the customer110 at the point of return 125 is printed, or otherwise displayed, onthe receipt 330.

As described above, the functions of the POR device 300 may additionallyor alternatively be provided by other types of electronic devices, suchas a suitably programmed and configured point-of-sale (POS) terminal,cash register terminal, or other device that may process merchandisereturns as well as other types of transactions and that may usetechnologies such as biometrics, bar-code readers, and the like.

FIG. 4 depicts a series of sample user interface screenshots 410-419 forone embodiment of a process for collecting data at a point of return125. The screenshots 410-419 depicted in FIG. 4 exemplify screenshotsthat may be presented on a display screen 310 of a POR device 300 suchas the one depicted in FIG. 3.

The screen shots 410-419 represent prompts to the clerk to inputinformation associated with the requested merchandise return so that areturn authorization determination may be made for the requested return.In the sample screenshots shown in FIG. 4, the first four screenshots410-413 represent prompts for information about the customer 110requesting to make the return. Screenshot 414 represents a prompt forthe clerk to enter identifying information about him/herself.Screenshots 415-418 represent prompts for the clerk to input informationabout the requested merchandise return transaction, and Screenshot 419represents a prompt for the clerk to verify, and, if need be, edit, theinformation previously input to the POR device 300 before theinformation is sent to the return authorization service 100 with arequest for an authorization determination.

More specifically, in Screenshot 410, the clerk is prompted to indicatewhich kind (if any) of identification verification the customer 110 isproviding. In Screenshot 411, assuming that the clerk indicates that thecustomer 110 is presenting a driver's license or other stateidentification card, the clerk is now prompted to input the driver'slicense number or state identification card number. As was discussedabove, this information may be keyed in, read electronically from amagnetic stripe, barcode, or other smart card reader, or input using anyof a wide variety of other input technologies.

Furthermore, in various embodiments, if desired, the POR device 126 maybe configured to alternatively or additionally accept input about othertypes of identification, such as other types of U.S. government-issuedidentification numbers, or Canadian or Mexican identification numbers.Examples of identification that may be used, alone or in combinationwith one another, include, but are not limited to numbers, identifiersor other data associated with: student identification, militaryidentification, passport, voter registration card, Immigration andNaturalization Service documents (such as a green card or laser visa),consular identifications (matricula consular and others), loyalty card,gift card, coupon, merchandise credit slip, receipt authorization code,checking account, receipt date or other combination of receipt dataidentifiers, name, address (current and/or past), data of birth, phonenumber, SSN, credit card, debit card, biometrics (photo, face,fingerprint, voice, DNA, retinal), employer identification number,digital image of the customer obtained from license, customer birth dateand/or age, driver's license expiration date, security system number,and many other types of accounts and identifiers.

In Screenshot 412, the clerk is prompted to input the customer's zipcode, which may be used, for example, to assist in verifying correctidentification of the customer 110, as well as to provide informationabout the distance from merchant establishment to the customer's home,which may be used in some embodiments of the authorizationdetermination. In Screenshot 413, the clerk is prompted to input theexpiration date of the customer's driver's license or stateidentification card. In Screenshot 414, the clerk is prompted to enter alogin ID or other employee identification number. In Screenshot 415, theclerk is prompted to enter the total dollar return amount requested bythe customer 110. In Screenshot 416, the clerk is prompted to enter thetotal number of items being presented for return by the customer 110. InScreenshot 417, the clerk is prompted to enter whether the customer 110has a receipt for the items being returned.

In Screenshot 418, the clerk is prompted to enter the type of returnbeing requested by the customer 110. For example, the customer may berequesting to return the merchandise for a cash exchange (or credit toan account on which it was originally charged), for an even exchangewith merchandise priced exactly the same, or for a merchandise exchangewhen a new merchandise purchase is presented to the clerk as part of thereturn transaction and for which a dollar balance is due to either thecustomer or to the store. In other embodiments, the customer may requestand/or be offered an opportunity to exchange all or a portion of themerchandise for a gift card, store check, store credit, debit card,credit card, or other suitable tender or medium of exchange, and the PORdevice 126 may be configured appropriately to capture that information.

In Screenshot 419, the clerk is presented with a summary of the inputtedtransaction information. The return transaction is assigned anidentification number, and the clerk is prompted to verify that theexchange dollar amount and number of items have been correctly entered.The clerk is also prompted to verify whether a purchase receipt has beenprovided with the return request. The clerk provides an input indicatingeither that the information is correct or that the information needs tobe edited.

The screenshots of FIG. 4 have been provided as an example of a PORdevice 126 user interface interaction for inputting information about arequested merchandise return. As will be familiar to one of skill in theart, a wide array of variations may exist in the exact methods used toobtain information about the requested return at the point of return125. The content and order of screenshot displays, for example, may bedifferent than those depicted in FIG. 4, and, in fact, the clerk may beexpected to input the relevant data in response to an interactive voiceresponse (IVR) system or without the use of prompts at all. In someembodiments, the POR device 126 may be configured to allow for thecollection of some or all of the following additional information:retailer identification, consumer name and address, current price of thereturned items, identifier (such as SKU number, UPC, or other type ofidentifier) of the returned items, product condition, customer's statedreason for making the return, purchase date, time, tender type, andoriginal salesperson, original sales transaction identifier, as well asother types of information.

Furthermore, the POR device 126 may preferably be configured toautomatically transmit some additional information to the returnauthorization service 100 with the request for authorizationdetermination. For example, an identifier associated with the POR device126 may be transmitted to the return authorization service 100 and maybe used to identify the merchant 120, the store branch or other locationat which the point of return device 126 is located, as well as the dateand local time of the requested return transaction, and the like.

As will be described with reference to FIG. 6, in various embodiments,the determination whether to authorize a requested return, and,similarly, whether to issue a warning along with an authorizationapproval, may depend on a wide variety of factors, some of which mayinvolve the input of data at the point of return 125. Accordingly, theseries of prompts that are displayed to the clerk may be adjusted toprompt for data appropriate to the given embodiment.

FIG. 5 depicts one embodiment of a fraud model architecture that may beused to implement one or more statistical models used by the decisionengine 135 of the return authorization service 100. In variousembodiments, the statistical models accept information available at thetime of a merchandise return transaction and provide an outputted scoreor other assessment that represents a relative likelihood that therequested return is abusive or fraudulent. The assessment may beintegrated into a return authorization process to provide anauthorization determination to a clerk processing the return transactionat the point of return 125.

As depicted in FIG. 5, data collected during a requested returntransaction 510, together with existing stored data 520, which maycomprise information about the customer, the clerk, the store, and/orother stored data, are processed to create variables 530 that areindicators of fraud.

Examples of the types of stored data 520 that may be used may include,but are not limited to: current and past return-related transaction datafrom this customer 110 at this and other branches of the merchant'sestablishment 120, other transaction data collected from point-of-salesystems operated by the merchant 120, employee records, informationregarding the merchandise whose return is being requested, transactiondata collected at points of return 125 from other customers thought tobe related to this customer 110 by home address, family name, or otherconnecting data, information about the store where the return is takingplace, information about the merchant, and/or information associatedwith seasonal considerations associated with return transactionactivity. Other types of data that may be used include, but are notlimited to, merchandise SKU codes or other identifiers, data from othermerchants, criminal records, address history records, credit data, dataabout identification theft, address information, and the like.

The variables 530 may be simple variables, based directly on datainputted at one or more POR devices 126, such a number of items beingreturned, and/or may be more complex variables that the systemcalculates based on two or more pieces of stored or inputted data, suchas a percent, average, median, maximum, minimum, or sum of other dataitem subsets, values relating to a person's pattern of travel, measureof consumer profitability, sales and return seasonality, and any othervalue which can be derived from the stored and/or inputted data. Thevariables 530 may be used to update the repository of stored data 520and are used to create or supply input data to a fraud detection model540.

As will be familiar to one of skill in the art, a wide variety ofmethods, including ruled-based, statistical, and other methods, areavailable for use, alone or in combination, to construct a model for usewith a decision-making system. For example, the fraud detection model540 may be created using one or more statistical methodologies,including, for example, logistic regression, linear regression,discriminant analysis, or some other modeling technique such as fuzzylogic systems, feed-forward neural networks, Bayesian or otherprobabilistic system. The fraud detection model 540 uses the variables530 to determine a fraud score 550 that indicates the determinedlikelihood that fraud is occurring on the return transaction or that thecustomer 110 is abusing the merchant's return policy.

For example, the following pseudocode describes one embodiment of afraud score 550 calculation using the variables 530:

SCORE=−11.6828285287;

SCORE=SCORE+A*B*−0.2903944075;

SCORE=SCORE+C*0.4347462065;

SCORE=SCORE+A*1.0274579996;

SCORE=SCORE+D*E*0.0224254388;

SCORE=SCORE+D*E ²*−0.0000414985;

SCORE=SCORE+F*0.4890091670;

SCORE=SCORE+G*−0.4883078393;

SCORE=SCORE+H*1.1295824050;

SCORE=SCORE+I*0.1874589093;

SCORE=SCORE+J*3.4938824622;

where the variables, based on a given customer's previous transactionswith one or more of the merchant's branches, have the followingmeanings, and where for variables marked with a ˜ symbol, transactionsoccurring within fifteen minutes of one another count as a singletransaction:

A=Number of return transactions in any 365 day period which had the sameamount

B=˜Number of non-receipted return transactions in the past thirty days

C=˜Number of receipted return transactions in the past thirty days

D=˜Average amount over all return transactions is less than $25 (0=true,1=false)

F=˜Average amount of all return transactions

H=˜Number of stores visited in the past thirty days where a return wasmade

I=˜Number of return transactions in the past 365 days

J=˜Average number of stores visited in the twenty-four hours before alltransactions

In some embodiments, in order to generate a score in the range from1-1000, the following conversion may be applied to the value for SCORE:

SCORE=round(1000/(1+exp(−SCORE)))

This set of sample calculations generates a score in which a higherscore indicates a higher likelihood of risk associated with acceptingthe merchandise return. For example, in some embodiments, a scoregenerated using such a set of calculations may be approved if the scoreis less than eight hundred, denied if the score is greater than ninehundred, and approved with a warning about the acceptance of futuremerchandise returns if the score is between eight hundred and ninehundred.

In other embodiments using the above-described scoring example, acustomer whose merchandise return request receives a score above ninehundred on a first occasion may be approved with a warning, while thesame customer may be denied on a second occasion that a merchandisereturn receives a score over nine hundred.

As will be familiar to one of skill in the art, a wide variety ofmethods for calculating and using scores may be used in conjunction andas a part of the systems and methods described herein. For example, insome embodiments, two or more scores may be generated for a requestedmerchandise return, and an assessment may consider some or all of thescores in making an authorization determination. As will be furtherfamiliar to one of skill in the art, systems and methods that employother ways of assessing risk and/or otherwise deciding whether toauthorize a merchandise return, such as rule-based systems, may be usedin place of or in addition to calculating one or more scores 550.

To continue with the example of FIG. 5, the score 550 is then used by areturn decision process to activate business rules 560 specified by themerchant 120.

For example, one or more business rules 560 may establish that customers110 whose requested return transaction is assigned a score 550 that isabove a pre-determined threshold value may have their return accepted,customers 110 whose requested return transaction is assigned a score 550that is below the pre-determined threshold value may have their returndenied. In some embodiments, one or more business rules 560 may specifythat acceptance or denial of a requested return transaction may be basedon more than just the calculated score 550, and may, for example, takeinto consideration specific factors relevant to the merchant's returnpolicy 150.

In some embodiments, one or more business rules 560 may pertain to theissuance of return-related warnings to the customer 110 and may specifyconditions under which a warning is issued to a customer 110. Forexample, in one score-based embodiment where a lower score indicates ahigher degree of risk, if a score 550 for a requested return transactionis above the pre-determined threshold by only a small margin that fallswithin a predetermined range, a warning may be printed on a transactionreceipt 330 presented to the customer 110 together with the returnapproval. As another example, in embodiments where frequency of returnscauses the calculated score 550 to drop, and if another return by thecustomer 110 within a short period of time would likely receive a score550 that falls below the threshold, a warning may be printed on thetransaction receipt 330, notifying the customer 110 of this situation,and, in some embodiments, providing an indication to the customer 110 ofthe length of time during which merchandise returns are not likely to beaccepted.

As described above, a variety of factors may influence a determinationof whether a requested return is to be accepted or denied. Whenacceptance of a requested return is authorized, a further determinationmay be made as to whether to issue a warning to the customer 110 aboutpossible future limitations on the customer's ability to make futuremerchandise returns. In some embodiments, the warning determination isimplemented as a separate determination that is initiated once arequested return transaction is accepted. In other embodiments, thewarning determination is implemented in conjunction with theauthorization determination. For example, in one score-based systemembodiment, scores that fall within one or more pre-determined rangesmay cause a return to be authorized without inclusion of a warning tothe customer, while scores that fall within one or more otherpre-determined ranges may generate an authorization that includes awarning about possible limitations on future returns.

Once the return authorization service 100 has determined that issuanceof a warning is warranted, the warning may be presented to the customer110 in a variety of forms. In some preferred embodiments, the warning isprinted or otherwise visually displayed on the receipt 330 that isprovided to the customer 110 by the clerk at the point of return 125. Insome embodiments, the clerk is not visually or otherwise directlynotified of the inclusion of the warning. Instead, the POR device 126may be configured to receive an indication of the warning determinationfrom the return authorization service 100 and to automatically print thewarning on the receipt 330. Additionally or alternatively, the warningmay be displayed on an electronic display for viewing by the customer,may be provided via email or other electronic transmission, verbally bythe clerk, hand-written at the point of return, in other printed form,such as a postcard or other mailed notification, aurally, or by anothercommunication method.

When the warning is printed on the receipt 330, the warning may, in someembodiments, appear as a text message on the receipt. For example, amessage on the receipt may state, “Dear Customer, Your current return isapproved, but you will now be unable to return additional merchandisefor sixty days.” Thus, the warning may include information about aperiod of time during which merchandise return from the customer may notbe accepted.

In other embodiments, a printed warning may include an explanation that,in accordance with one or more of the merchant's return guidelines, thecustomer may have exceeded or is likely to exceed a threshold score onan upcoming return.

Alternatively, or additionally, text printed on the receipt 330 mayinclude a listing of the customer's recent return and/or purchasetransactions.

A color code, such as a red/yellow/green color code, may be employed, inother embodiments, to indicate to the customer 110 the severity of thewarning. The color code may be implemented by actually using colored inkor other colored indicator on the receipt, such as color of the receiptpaper itself. Alternatively, the color code may be more of a code namethat is presented to the customer using text. For example, a customer'sreturn transaction receipt may have printed on it: “Dear ValuedCustomer, Your return code color is Green. Accordingly, you currentlyhave normal return privileges,” or “Dear Valued Customer, Your returncode color is red. Accordingly, you may not make another return forsixty days.” In such systems, “warnings” serve the function of reportinga customer's current return authorization status and may be provided tocustomers whose return requests have been approved, regardless of scoreor other assessment.

As an alternative to or in addition to the above, the returnauthorization service 100 may, in some embodiments, calculate anumerical score that indicates the strength of the warning and transmitthat score to the POR device 126 for display to the customer 110. Thescore may be a score that was used by the return authorizations service100 to determine whether to authorize the return. Alternately, the scoremay be based on another scoring system, such as a simplified orspecialized scoring system that is selected for communicating a warningto the customer 110.

In yet another embodiment, the warning may be presented pictorially,using, for example, a bar graph, pie chart, or other graphical indicatorof the customer's status with respect to the return threshold level. Forexample, a “thermometer” chart may characterize excessive or otherwisesuspicious return behavior as getting “hot” as it approaches thethreshold.

As will be understood by a practitioner of skill in the art,combinations of one or more of the foregoing warning systems, as wellother similar systems may be used to provide return-related warnings forthe customer requesting to make a return.

FIG. 6 depicts a set of factors 601-616 that influence one embodiment ofa process for determining whether to authorize at a point of return 125.In other embodiments, a different set of factors, including some, all,or none of the factors depicted in FIG. 6, may influence thedetermination 600. Furthermore, as described in greater detail below,some or all of the factors may influence a determination 600 as towhether to issue a warning to the customer requesting that a merchandisereturn transaction be accepted.

Broadly speaking, the factors may include information about the currentreturn, information about the customer's identification, informationabout the customer's past purchase and/or return history, as well asgeneral information about the store and other related data.

For example, as depicted in FIG. 6, factors 601-607 associated with thecurrent return transaction may include information about an identifier601 for the clerk handling the return, and in some embodiments anidentifier for the clerk(s) who handled the associated purchasetransaction, a dollar amount associated with the requested return 602,the items in the current return 603, a receipt for the items beingreturned 604, the age of the receipt 605, the type of return 606requested by the customer, and the type of merchandise being returnedrelative to the merchant type 607. Other factors associated with thecurrent return transaction may include, but not be limited to, alocation and/or identifier for the merchant, the day, date and/or timeof the requested return, an amount of time lapsed since purchase of theitems being returned, and information about other customers in themerchant location 120 during the time of the requested returntransaction.

The dollar amount associated with the return 602 may include a netreturn dollar amount, for example, the dollar amount of the requestedreturn without tax, or the net amount of the return with any discountstaken into consideration. The dollar amount 602 may additionally oralternatively include a net transaction amount that takes intoconsideration the amount of the return amount and the amount of anypurchases and/or exchanges being made by the customer at the same time.

Information about items presented for return 603 may include informationabout one or more item identifiers (bar code, UPC, SKU, RFID, and thelike), information about individual item prices and merchandise types,as well as a total number of items being returned.

Information about one or more purchase receipts 604 for the items beingpresented for return 604 may include, for example, date of the receipt,one or more data items that serve to identify the receipt, and whether areceipt is presented by the customer for each returned item.

Factors associated with the customer's identification may include amatching of the identification and/or biometric information 616 offeredby the customer at the point of return 125 with stored identificationand/or biometric information about the customer 110. For example,information about fingerprint, retina, voice and/or facial or othermetrics may be used. Additionally, information about the customer'scurrent and, possibly, past home addresses may serve as a factor in thedetermination 600 that may be used to calculate the geographicaldistance 615 from the customer's home to the store. The customer's homeaddress may also be compared to stored information about the clerk'shome address in order to rule out a possibly fraudulent and usuallyforbidden processing of the return transaction by clerk who shares ahome address with the customer 110. Additional information about thecustomer, such as, for example, birth date, state of residence, state ofidentification card, identification number, loyalty card number, giftcard number, checking account number, coupon number, merchandise creditslop number, phone number(s), credit card number, check number, debitcard number, receipt authorization code, license expiration date, andany information available on a driver's license or other presented formof identification may also be used in as factors. In some embodiments,identification of the customer allows for determining whether thecustomer is included on a “positive list” of customers whose returns maybe automatically accepted or authorized more easily, or a “negativelist” of customers whose returns may be automatically rejected orscrutinized more carefully, or another subset of customers whosemerchandise returns may be processed in a special manner.

Furthermore, other available types of information about the customer,such as credit information, check information address history, andpossible shoplifting record or other criminal record information mayalso be useful as a factor.

A wide variety of factors 609-614 regarding the customer's history ofpurchase and/or return transactions may influence the determination 600whether to authorize a merchandise return approval. For example, twofactors are the number of returns 613 and the dollar amount of thereturns 612, as well as the dollar amounts and identifiers of theindividual merchandise items, that the customer has requested within oneor more recent periods of interest, including, in some embodiments, theoccurrence of any denied return transactions. Dates, times, andlocations of previous requested returns may be a factor, as well asprevious return authorization scores or other assessments determined forthe customer and past returns for the same items as the current return.Another factor is the number of unreceipted returns 611 that thecustomer has requested within one or more recent periods of interest.The identifiers for the clerks handling previous returns 610 and thegeographic distances from the locations of other recent returns 614, aswell as the number of returns within a pre-determined geographic area,may be used as factors in the determination 600 whether to issue awarning. In addition, in some embodiments, information about thecustomer's purchase history 609 with the merchant, including, forexample, dollar amounts, numbers of items, price and identifiers ofindividual items, and number of recent purchases, payment types andpayment history, previous warnings received, previous authorizationscores, may influence the determination 600. Additional factors ofinterest associated with the customer's past transactions may includeinformation about discounts and/or credit associated with previouspurchases and/or overrides associated with past returns, as well as pastpayment information.

In addition to the above-described factors, other factors may influencean authorization determination 600, as suits the preferences of themerchant 120. As one example, the merchant 120 may desire to haveseasonal considerations 608 influence the authorization determination600, for example, rejecting fewer returns during the holiday shoppingseason, or alternatively, allowing more returns while issuing morewarnings. Seasonal considerations 608 may also affect subsequentdeterminations 600, such as in embodiments in which returns made duringa holiday period are “weighed” less heavily against the customer thanreturns made at other times of the year. Current and/or past addressdata associated with employees may also be a factor, as well as overrideinformation associated with the employees.

Other types of information available from external sources 618, eitherpublicly available free information and/or purchased information mayserve as factors. For example, sales tax information, postal boxinformation, census data, householding data, identification theft data,Department of Commerce data, credit data, bank data, check data, crimedata, loan delinquency data, and the like may be received from sourcesexternal to the return authorization service 100 and used to make adetermination 600. Some or all such data 618 may be stored for later useand/or may be accessed from one or more external sources on an as-neededbasis.

Furthermore, data that has been collected by other merchants 617,including data collected in association with purchase and/or returntransactions and authorizations, may be shared with the merchant 120 andused as factors in the determination 600.

As stated above, some or all of the factors 601-616 in FIG. 6 mayinfluence one embodiment of a process for determining whether to issue awarning at a point of return 125. In other embodiments, a different setof factors, including some, all, or none of the factors depicted in FIG.6, may influence the determination 600. Broadly speaking, the factorsmay include information about the current return, information about thecustomer's identification, information about the customer's pastpurchase and/or return history, as well as general information about thestore and other related data.

For example, as depicted in FIG. 6, factors 601-607 associated with thecurrent return transaction may include information about an identifier601 for the clerk handling the return, and in some embodiments anidentifier for the clerk(s) who handled the associated purchasetransaction, a dollar amount associated with the requested return 602,the items in the current return 603, a receipt for the items beingreturned 604, the age of the receipt 605, the type of return 606requested by the customer, and the type of merchandise being returnedrelative to the merchant type 607. Other factors associated with thecurrent return transaction may include, but not be limited to, alocation and/or identifier for the merchant, the day, date and/or timeof the requested return, an amount of time lapsed since purchase of theitems being returned, and information about other customers in themerchant location 120 during the time of the requested returntransaction.

The dollar amount associated with the return 602 may include a netreturn dollar amount, for example, the dollar amount of the requestedreturn without tax, or the net amount of the return with any discountstaken into consideration. The dollar amount 602 may additionally oralternatively include a net transaction amount that takes intoconsideration the amount of the return amount the amount of anypurchases and/or exchanges being made by the customer at the same time.

Information about items presented for return 603 may include informationabout one or more item identifiers (bar code, UPC, SKU, RFID, and thelike), information about individual item prices and merchandise types,as well as a total number of items being returned.

Information about one or more purchase receipts 604 for the items beingpresented for return 604 may include, for example, date of the receipt,one or more data items that serve to identify the receipt, and whether areceipt is presented by the customer for each returned item.

Factors associated with the customer's identification may include amatching of the identification and/or biometric information 616 offeredby the customer at the point of return 125 with stored identificationand/or biometric information about the customer 110. Additionally,information about the customer's current and, possibly, past homeaddresses may serve as a factor in the determination 600 that may beused to calculate the geographical distance 615 from the customer's hometo the store. The customer's home address may also be compared to storedinformation about the clerk's home address in order to rule out apossibly fraudulent and usually forbidden processing of the returntransaction by clerk who shares a home address with the customer 110.For example, information about fingerprint, retina, voice and/or facialor other metrics may be used. Additional information about the customer,such as, for example, birth date, state of residence, state ofidentification card, identification number, loyalty card number, giftcard number, checking account number, coupon number, merchandise creditslop number, phone number(s), credit card number, check number, debitcard number, receipt authorization code, license expiration date, andany information available on a driver's license or other presented formof identification may also be used in as factors. In some embodiments,identification of the customer allows for determining whether thecustomer is included on a “positive list” of customers whose returns maybe automatically accepted or authorized more easily, or a “negativelist” of customers whose returns may be automatically rejected orscrutinized more carefully, or another subset of customers whosemerchandise returns may be processed in a special manner.

Furthermore, other available types of information about the customer,such as credit information, check information address history, andpossible shoplifting record or other criminal record information mayalso be useful as a factor.

A wide variety of factors 609-614 regarding the customer's history ofpurchase and/or return transactions may influence the determination 600whether to authorize a merchandise return approval. For example, twofactors are the number of returns 613 and the dollar amount of thereturns 612, as well as the dollar amounts and identifiers of theindividual merchandise items, that the customer has requested within oneor more recent periods of interest, including, in some embodiments, theoccurrence of any denied return transactions. Dates, times, andlocations of previous requested returns may be a factor, as well asprevious return authorization scores or other assessments determined forthe customer and past returns for the same items as the current return.Another factor is the number of unreceipted returns 611 that thecustomer has requested within one or more recent periods of interest.The identifiers for the clerks handling previous returns 610 and thegeographic distances from the locations of other recent returns 614, aswell as the number of returns within a pre-determined geographic area,may be used as factors in the determination 600 whether to issue awarning. In addition, in some embodiments, information about thecustomer's purchase history 609 with the merchant, including, forexample, dollar amounts, numbers of items, price and identifiers ofindividual items, and number of recent purchases, payment types andpayment history, previous warnings received, previous authorizationscores, may influence the determination 600. Additional factors ofinterest associated with the customer's past transactions may includeinformation about discounts and/or credit associated with previouspurchases and/or overrides associated with past returns, as well as pastpayment information.

In addition to the above-described factors, other factors may influencethe warning determinations 600, as suits the preferences of the merchant120. As one example, the merchant 120 may desire to have seasonalconsiderations 608 influence the warning determination 600, for example,issuing fewer warnings during the holiday shopping season, oralternatively, allowing more returns while issuing more warnings.Seasonal considerations 608 may also affect subsequent determinations600, such as in embodiments in which returns made during a holidayperiod are “weighed” less heavily against the customer than returns madeat other times of the year. Current and/or past address data associatedwith employees may also be a factor, as well as override informationassociated with the employees.

Other types of information available from external sources 618, eitherpublicly available free information and/or purchased information mayserve as factors. For example, sales tax information, postal boxinformation, census data, householding data, identification theft data,Department of Commerce data, credit data, bank data, check data, crimedata, loan delinquency data, and the like may be received from sourcesexternal to the return authorization service 100 and used to make adetermination 600. Some or all such data 618 may be stored for later useand/or may be accessed from one or more external sources on an as-neededbasis.

Furthermore, data that has been collected by other merchants, includingdata collected in association with purchase and/or return transactionsand authorizations, may be shared with the merchant 120 and used asfactors in the determination 600.

With respect to the process for determining when to authorize a returnand the process for determining whether to issue a warning, any one ofthe factors described herein with reference to FIG. 6 or in any otherportion of this disclosure may be used by the decision engine 135 as asingle or separate factor, or may be used in combination with any subsetof the factors 601-618 to make a determination 600. For example, in someembodiments, customer identification information 616 may be used inconjunction with any one or more of the following types of informationto make a determination: original receipt date, dollar amount of thereturn without tax, net return transaction amount, number of items beingreturned, SKU identifier(s) for returned item(s), RFID identifier(s) forreturned item(s), and receipt identifier or combination of uniquelyidentifying data items for the receipt. In other embodiments, othersingle factors or combinations of factors may be used to make thedetermination 600.

Thus, the process for determining when to authorize a return and theprocess for determining whether to issue a warning may be highlycustomized to the business preferences of the merchant 120, if desired,and may be tailored to include factors deemed relevant and practical forthe merchant's business.

FIG. 7 is a flowchart that illustrates one embodiment of a process 700for collecting data at a point of return 125. The process 700 begins inBlock 710 with the receipt of a request to accept a merchandise return.Moving on to Block 720, in one embodiment, a clerk at the point ofreturn 125 inputs data associated with the point of return 125. Forexample, the clerk may be prompted, or may input without being prompted,an employee identifier that allows himself or herself to be identifiedas handling the requested return. In other embodiments, the clerk mayalso input a POR device 126 terminal number, and store location for usein the return authorization determination. Information about the PORdevice 126 terminal number and/or store location may additionally oralternatively be provided automatically by the POR device 126 and/or maybe accessed from stored information associated with the POR device 126.

In Block 730, the clerk inputs data associated with the requestedmerchandise return transaction. The inputted information may include,but is not limited to, any of the following types of information: dateand/or time of the requested return transaction; quantity, identifiers,prices, and/or types of the merchandise items being presented forreturn; presence or absence of receipt(s) for the merchandise beingpresented for return; and a type of return being requested (for example,exchange for merchandise, exchange for cash or other form of tender,partial exchange, etc.)

In Block 740, the clerk inputs data associated with the customer. Forexample, any of a wide variety of types of identification informationabout the customer may be inputted.

As will be familiar to one of skill in the art, the above-mentionedtypes of information may be inputted using a wide variety of data-inputmethod technologies associated with the POR device 126 and/or any of avariety of peripheral or associated devices. For example, the data maybe input using one or more of: a keyboard, touch screen, stylus,microphone, camera, magnetic stripe scanner, bar code scanner, otherelectronic reader, biometric input device, or other appropriatelyconfigured devices.

In Block 750, the requested merchandise return transaction is processed.In some embodiments, an indication of an authorization determination isprovided to a clerk handling the return transaction. In someembodiments, a manager or other authorized merchant representative mayoverride the determination for any of a variety of authorized reasonsand may, for example, approve a requested return transaction that thedetermination recommended denying.

As will be familiar to one of skill in the art, other embodiments of theprocess 700 described in FIG. 7 may be carried out by executing thefunctions described in FIG. 7 in a different order, by dividing thefunctions in another manner, and/or by including some or all of thefunctions described above in conjunction with other associatedfunctions.

FIG. 8 is a flowchart that illustrates one embodiment of a process 800for issuing a warning notice to a customer 110 at a point of returndevice 126.

In Block 810, the process 800 begins when the point of return (POR)device 126 receives a request for a merchandise return transaction.

In Block 820, data used for processing the requested merchandise returntransactions is entered into the POR device 126, which may be adedicated device or may be a device that is used for other purposes, aswell, such as a point of sale terminal.

In Block 830, the POR device 126 transmits the entered data to thereturn authorization service 100 for processing of the returnauthorization determination.

In Block 840, the POR device 126 receives an indication of anappropriate warning notice, if one has been identified for themerchandise return transaction.

In Block 850, the POR device 126 prints, or otherwise presents to thecustomer 110, the selected warning. In other embodiments, in addition toor as an alternative to a warning presented by the POR device 126, awarning may be presented to the customer in any of a wide variety ofother methods. Furthermore, as will be familiar to one of skill in theart, other embodiments of the process 800 described in FIG. 8 may becarried out by executing the functions described in FIG. 8 in adifferent order, by dividing the functions in another manner, and/or byincluding some or all of the functions described above in conjunctionwith other associated functions.

FIG. 9 is a flowchart that illustrates one embodiment of a process 900for determining whether to issue a warning notice to a customer 110 at apoint of return 125.

In Block 910, the return authorization service 100 receives dataassociated with a requested merchandise return.

In Block 920, the return authorization service 100 determines the riskof authorizing the requested return transaction based, at least in part,on the received data, as well as on stored data that may includeinformation about merchant return policies 150, information associatedwith the customer's past purchase and/or return transactions,information about the clerk, and any of a wide variety of other types ofinformation, as exemplified in FIG. 6 above.

In Block 930, the return authorization service 930 determines whether toauthorize the requested merchandise return transaction.

If, in Block 930, the return authorization service 100 determines thatthe requested merchandise return transaction should not be authorized,the process 900 passes to Block 940, where the return authorizationservice 100 sends an indication of a denial to the POR device 126, andthe process 900 ends.

If, instead, in Block 930, the return authorization service 100determines that the requested merchandise return transaction should beauthorized, the process 900 passes to Block 950, where the returnauthorization service 100 determines whether to issue a warning togetherwith an acceptance of the requested merchandise return transaction, andif so, which warning. For example, a black-out period may be specifiedduring which time returns from the customer may not be accepted by themerchant. Alternatively, other conditions, limitations, or explanationsmay be provided to the customer as part of a warning issued inassociation with a requested merchandise return.

The process 900 passes to Block 960 where, if the return authorizationservice 100 determines to issue a warning together with acceptance ofthe requested merchandise return transaction, the return authorizationservice 100 sends to the POR device 126 an authorization to accept themerchandise transaction along with a warning for presenting to thecustomer 110, after which the process 900 ends.

If, in Block 960, the return authorization service 100 determines not toissue a warning together with acceptance of the requested merchandisereturn transaction, the return authorization service 100 sends to thePOR device 126 an authorization to accept the requested merchandisereturn transaction.

As will be familiar to one of skill in the art, other embodiments of theprocess 900 described in FIG. 9 may be carried out by executing thefunctions described in FIG. 9 in a different order, by dividing thefunctions in another manner, and/or by including some or all of thefunctions described above in conjunction with other associatedfunctions. For example, in some embodiments, the warning may not bepresented to the customer at the point of return, but may instead bemailed to the customer's home or may be otherwise presented to thecustomer.

While certain embodiments of the invention have been described, theseembodiments have been presented by way of example only, and are notintended to limit the scope of the invention. Indeed, the novel methodsand systems described herein may be embodied in a variety of otherforms; furthermore, various omissions, substitutions and changes in theform of the methods and systems described herein may be made withoutdeparting from the spirit of the invention. The accompanying claims andtheir equivalents are intended to cover such forms or modifications aswould fall within the scope and spirit of the invention.

1. A method of processing a merchandise return comprising: receiving arequest to authorize a merchandise return made by a consumer at amerchant's point of return; determining with one or more computerprocessors whether to authorize the return made by the consumer at themerchant's point of return based at least in part on whether theconsumer has made prior merchandise returns; and determining with one ormore computer processors the acceptability of future merchandise returnsby the consumer based at least in part on the information about thereturn history of the prior merchandise returns made by the consumer;and indicating whether future merchandise returns will be allowed. 2.The method of claim 1, wherein indicating whether future merchandisereturns will be allowed, comprises presenting a warning to the consumer.3. The method of claim 2, wherein presenting the warning to the consumercomprises at least one of the set consisting of: printing the warning,printing the warning on a receipt for the current merchandise return,emailing the warning, electronically transmitting the warning, mailingthe warning, writing a hand-written warning, displaying the warning, andproviding an aural warning.
 4. The method of claim 2, wherein indicatingwhether future merchandise returns will be allowed comprises presentinginformation about a period of time during which merchandise returns fromthe consumer will not be accepted.
 5. The method of claim 2, whereinindicating whether future merchandise returns will be allowed comprisespresenting information about one or more conditions for authorization offuture merchandise returns from the consumer.
 6. The method of claim 2,wherein determining with one or more computer processors whether toauthorize the return comprises at least one of the set consisting of: alist of previous merchandise returns associated with the consumer, alist of previous purchase transactions associated with the consumer, anexplanation of which of a set of return guidelines the consumer hasexceeded or is about to exceed, and a graphical representation of theconsumer's status relative to a return authorization threshold.
 7. Themethod of claim 1, wherein receiving a request to authorize amerchandise return further comprises transmitting information about atleast one of the set consisting of: identification of the consumer,identification of a clerk processing the merchandise return, informationabout a dollar value of the merchandise presented for return,information about whether an associated purchase receipt is availablefor the merchandise return, information about a type of merchandisereturn requested by the consumer, information about a location of themerchandise return, and information about a date of the merchandisereturn.
 8. A method of processing a merchandise return comprising:receiving information about a request to authorize a current merchandisereturn made by a consumer at a merchant's point of return; determiningwith one or more computer processors the acceptability of futuremerchandise returns by the consumer based at least in part oninformation about the return history of prior merchandise returns madeby the consumer; and indicating whether future merchandise returns willbe allowed.
 9. The method of claim 8, wherein indicating whether futuremerchandise returns will be allowed, comprises presenting a warning tothe consumer.
 10. The method of claim 9, wherein presenting the warningto the consumer comprises at least one of the set consisting of:printing the warning, printing the warning on a receipt for the currentmerchandise return, emailing the warning, electronically transmittingthe warning, mailing the warning, writing a hand-written warning,displaying the warning, and providing an aural warning.
 11. The methodof claim 9, wherein indicating whether future merchandise returns willbe allowed comprises presenting information about a period of timeduring which merchandise returns from the customer will not be accepted.12. The method of claim 8, wherein determining with one or more computerprocessors the acceptability of future merchandise returns comprises atleast one of the set consisting of: a list of previous merchandisereturns associated with the consumer, a list of previous purchasetransactions associated with the consumer, an explanation of which of aset of return guidelines the consumer has exceeded or is about toexceed, and a graphical representation of the consumer's status relativeto a return authorization threshold.
 13. The method of claim 8, whereinreceiving a request to authorize a merchandise return further comprisestransmitting information about at least one of the set consisting of:identification of the consumer, identification of a clerk processing themerchandise return, information about a dollar value of the merchandisepresented for return, information about whether an associated purchasereceipt is available for the merchandise return, information about atype of merchandise return requested by the consumer, information abouta location of the merchandise return, and information about a date ofthe merchandise return.
 14. An apparatus for processing a merchandisereturn comprising: a merchandise return device executing in at least onecomputer processor, the merchandise return device configured to receiveinformation about a request to authorize a current merchandise returnmade by a consumer at a merchant's point of return, wherein themerchandise return device is configured to determine the acceptabilityof future merchandise returns by the consumer based at least in part oninformation about the return history of prior merchandise returns madeby the consumer, and wherein the merchandise return device is furtherconfigured to indicate whether future merchandise returns will beallowed.
 15. The apparatus of claim 14, wherein the merchandise returndevice is configured to present a warning to the consumer.
 16. Theapparatus of claim 15, wherein the warning to the consumer comprises atleast one of the set consisting of: printing the warning, printing thewarning on a receipt for the current merchandise return, emailing thewarning, electronically transmitting the warning, mailing the warning,writing a hand-written warning, displaying the warning, and providing anaural warning.
 17. The apparatus of claim 14, wherein the merchandisereturn device is configured to present information about a period oftime during which merchandise returns from the customer will not beaccepted.
 18. The apparatus of claim 14, wherein the merchandise returndevice determines the acceptability of future merchandise returns withat least one of the set consisting of: a list of previous merchandisereturns associated with the consumer, a list of previous purchasetransactions associated with the consumer, an explanation of which of aset of return guidelines the consumer has exceeded or is about toexceed, and a graphical representation of the consumer's status relativeto a return authorization threshold.
 19. The apparatus of claim 14,wherein the request to authorize a merchandise return further comprisestransmitting information about at least one of the set consisting of:identification of the consumer, identification of a clerk processing themerchandise return, information about a dollar value of the merchandisepresented for return, information about whether an associated purchasereceipt is available for the merchandise return, information about atype of merchandise return requested by the consumer, information abouta location of the merchandise return, and information about a date ofthe merchandise return.